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As with most bonds, consider a bond with a face value of $1,000. The bond's maturity...

As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 10 years, the coupon rate is 5% paid annually, and the discount rate is 13%.

What is this bond's coupon payment?

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Answer #1

Bond's coupon payment is calculated on its face value,

Coupon payment =Face value*coupon rate

Coupon payment =1000*5%

Coupon payment =50

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